The March 17 Council text for EMIR Art.8 Para.1b has recently been amended from earlier drafts in a way which creates uncertainty and serious risks for the trading of derivatives.
This paper summarises the concern that the latest Council drafting on the treatment of collateral potentially introduces a right of counterparties to request during the term of a trade that the party that has received posted collateral should stop using such collateral in their general business and instead to put in place special arrangements such as specific trust arrangement or full segregation with a third party custodian.
Documents (1) for ISDA–AFME brief on segregation in bilateral contracts in the context of EMIR – 13 April 2011
Latest
Data Subject Access Request Form
Pursuant to its mission to promote safe and efficient markets within the over-the-counter (OTC) derivatives industry, The International Swaps and Derivatives Association, Inc. (ISDA) processes personal data of its employees, members and non-members (for example individuals attending ISDA conferences or...
ISDA and GDF publish tokenization report
ISDA and Global Digital Finance have published a report that examines the viability of using tokenized money market funds (MMFs) as collateral for derivatives within existing US legal, regulatory and operational frameworks. Based on feedback from over 120 firms, the report...
SA-CCR Own Goal Must be Corrected
In soccer, own goals do occasionally occur, when a defending player accidentally hits the ball into his or her own net, usually under intense pressure from the opposing team. In fact, the current FIFA World Cup looks set to break...
Joint Response on Future of Tokenization
On July 6, ISDA and Global Digital Finance (GDF) submitted a joint response to a call for input on the future of tokenization by the Financial Conduct Authority (FCA) and Bank of England. Tokenization presents a significant opportunity for the...